Answer:
7.47 times
Explanation:
The computation of operating leverage is shown below:-
= (Sales - Variable costs) ÷ (Sales - Variable costs - Fixed costs)
= ($1,896,000 - $804,000 - $180,000) ÷ ($1,896,000 - $804,000 - $180,000 - $520,000 - $270,000)
= $912,000 ÷ $122,000
= 7.47 times
The (Sales - Variable costs) = Contribution margin
The (Sales - Variable costs - Fixed costs) = EBIT
The correct answer is 7.47 times.Therefore, the option is not available.
Answer: $3,350
Explanation:
GDP is the addition of value of goods and service minus purchase of intermediate goods.
Formula to calculate value-added by each firm is shown below:
Value-added = Sales by Firm + Change in stock – purchase of raw material
Value added by firm A = $5 × 200 + 0 – ($250 + $200)
= $550
Value added by firm B = $7 × 300 + 0 – ($150 + $100)
= $1,850
Value added by firm C = $1,000 + 0 - $50
= $950
Economy's GDP = Value added by firm A + Value added by firm B + Value added by firm C
= $550 + 1,850 + 950
= $3,350
The value of GDP is $3,350
Answer:
sustainable growth rate for Crash Davis Driving School: 9.044%
Explanation:
0.133 x (1-0.32) = 0.09044
The firm will grow as the amount that isn't paid as dividends increase the equity through retained earnings. Because both, common sense the acounting equaition if the earnings are retained they will be investment and assets will increase:
Assuming the company thakes no debt for the period then:
Assets = liab + equity
Assets = 0 + increase in RE
Assets = + increase in RE
Thus, this is the rate at which assets grows without taking new debt
False is your answer so it would be b
Answer:
13.28%
Explanation:
return on stockholders' equity = net income after taxes and preferred stock dividends / average stockholders' equity
- net income = $1,429,000
- preferred stocks dividends = 8,000 stocks x $75 x 6% = $36,000
- average stockholders' equity = ($10,317,000 + $10,662,000) / 2 = $10,489,500
return on stockholders' equity = ($1,429,000 - $36,000) / $10,489,500 = 13.28%
